Slide 1: 4Q 2023
4Q 2023 Fornebu, February 8, 2024 Kjetel Digre, CEO Idar Eikrem, CFO 2024 © Aker Solutions
Slide 2: 4Q 2023 | Building a Strong Foundation for the Future
4Q 2023 | Building a Strong Foundation for the Future Revenue Excluding special items EBITDA Excluding special items Financials & Operations 11.0 NOK BILLION 615 NOK MILLION ■ High revenue growth and improved profitability 12 700 ■ Large secured backlog of projects with balanced risk-reward 10 600 8
Slide 3: 2023 | Improved Financials, Strong Intake and Solid Backlog
2023 | Improved Financials, Strong Intake and Solid Backlog Revenue Excluding special items EBITDA Excluding special items Order Intake Order Backlog 36 NOK BILLION 1.3 NOK BILLION 35 NOK BILLION 73 NOK BILLION 40 1,400 80 80 1,295 73 73 36 68 1,200 30 60 60 27 1,000 800 19 20 669 20 40 40 621 35 60
Slide 4: Solid Backlog of Projects with Balanced Risk-Reward Profiles
Solid Backlog of Projects with Balanced Risk-Reward Profiles Order Backlog by Contract Model NOK billion Order Backlog by Execution Year NOK billion NOK NOK 73 73 billion billion 1 2 3 Alliance model Reimbursable Lump Sum 2024 2025 2026-> Balanced risk-reward profile High visibility for future activ
Slide 5: 4Q 2023 | Operational Highlights
4Q 2023 | Operational Highlights Aker BP portfolio Sunrise: HVDC Troll West: Electrification Rosebank: FPSO Northern Lights: Carbon Capture & Storage Hebron EPCM 2024 © Aker Solutions Fourth Quarter Results 2023 February 8, 2024 Slide 5
Slide 6: 4Q 2023 | New Orders of NOK 14.6 Billion in the Quarter
4Q 2023 | New Orders of NOK 14.6 Billion in the Quarter Renewables and Field Development Norfolk Vanguard West and Norfolk Vanguard East HVDC projects for Vattenfall Increased activity in consultancy and FEED studies Growth in existing contracts NOK 11.9 billion Life Cycle Growth in existing
Slide 7: Increased Capital Spending in Relevant Energy Markets
Increased Capital Spending in Relevant Energy Markets Global Market Spending1 USD billion O&G: Greenfield O&G: Brownfield OFFSHORE WIND CCS HYDROGEN 100 140 50 50 50 90 +4% +5% 120 80 40 40 40 70 100 ~2x 60 80 30 30 30 50 60 +10x +3x 40 20 20 20 30 40 20 10 10 10 20 10 0 0 0 0 0 2023 2026 2023 2026
Slide 8: Improvements in Offshore Wind “Broken Model”
Improvements in Offshore Wind “Broken Model” Legacy Renewables Projects Norfolk Development East Anglia 3 Sunrise Hywind Tampen Norfolk Vanguard West Norfolk Vanguard East Norfolk Boreas (not awarded) ▪ Project-by-project tendering ▪ Up to 3 HVDC platforms ▪ Lump sum contracting models ▪ Balanced ri
Slide 9: Tender Value at NOK 74 Billion
Tender Value at NOK 74 Billion Tender Value Development NOK billion 90 74 66 69 65 67 60 49 51 70 39 41 NOK 30 BILLION 0 4Q’21 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 <1 NOK BILLION 1 NOK BILLION 3 NOK BILLION More than 90% related to opportunities in Norway and Europe 2024 © Aker Solutions
Slide 10: Growing our Energy Consultancy Business
Growing our Energy Consultancy Business CO2 Value Chain Offshore Wind Solutions 47% Increase in Energy Consultancy revenues (year-on-year) CO2 capture, processing and storage Offshore wind foundation concept comparison terminal conceptual design and electrical transmission studies O&G Hub Strategies
Slide 11: Unique Technologies Reducing the Cost of Energy
Unique Technologies Reducing the Cost of Energy Array cable Collector hub Dynamic Array Cables Subsea HVAC Substation Reduced cable size & length Improved fatigue resistance 30-40% CAPEX reduction Reduced installation time Lower OPEX 80% less materials – low CO2 footprint Improved windfarm uptime Fl
Slide 12: Creating real impact with our digital solutions
Creating real impact with our digital solutions Engineering Construction Operations Strong Data Foundation & Artificial Intelligence 2024 © Aker Solutions Fourth Quarter Results 2023 February 8, 2024 Slide 12
Slide 13: Outlook
Outlook ■ Solid financial position ■ Financial robustness a key priority ■ High quality order backlog ■ Majority to be executed in well proven alliance models with balanced risk-reward profile and shared upside potential ■ Continued focus on predictable project execution ■ Legacy renewables projects
Slide 14: Financial Performance
Financial Performance Idar Eikrem, CFO 2024 © Aker Solutions
Slide 15: 4Q 2023 | Solid Performance
4Q 2023 | Solid Performance NOK million 4Q 2023 4Q 2022 2023 2022 Total revenue 11,066 8,275 36,262 27,500 Financials continue on-track with targets, with a Total revenue ex. special items1 11,021 8,274 36,107 27,461 Of which Net profit equity accounted investees 197 27 205 33 strong financial posit
Slide 16: High Order Backlog – Solid visibility for activity forward
High Order Backlog – Solid visibility for activity forward Order Backlog by Execution Year NOK billion Renewables and Energy Transition1 % 40 36.5 Share of Order Backlog 35 4Q 2021 4Q 2022 4Q 2023 30 24.6 25 26.2 20 15 18.1 11.6 34% 16% 19% 10 7.1 5 9.8 6.3 4.4 0 2024 2025 2026 -> Renewables and Ene
Slide 17: Renewables and Field Development
Renewables and Field Development Revenue EBITDA and Margin1 Financials and Highlights 7.1 NOK BILLION 362 NOK MILLION ■ Revenue of NOK 7.1 billion in quarter 8 400 10% 7 350 ■ 55% increase compared to same period last year 8% 6 300 ■ Annual revenues of NOK 22.1 billion, a 49% growth from 2022 5 250
Slide 18: Life Cycle
Life Cycle Revenue EBITDA and Margin1 Financials and Highlights 3.5 NOK BILLION 197 NOK MILLION ■ Revenue of NOK 3.5 billion in quarter 4 200 10% ■ 2023 revenues of NOK 13.1 billion representing annual growth of 7% 3 150 8% from 2022 5% 6% 6% 2 100 5% 5% 6% ■ EBITDA1 of NOK 197 million (5.6% margin)
Slide 19: OneSubsea Joint Venture
OneSubsea Joint Venture OneSubsea Joint Venture Financial Performance (100%) Financials and Highlights Revenue1 EBITDA 1,2 ■ Revenue1 of NOK 10.7 billion in quarter 10.7 2.0 ■ High activity levels in all major basins NOK BILLION NOK BILLION ■ EBITDA1,2 of NOK 2.0 billion in the quarter ■ Representin
Slide 20: 4Q 2023 | Working Capital Normalization Expected in 2024
4Q 2023 | Working Capital Normalization Expected in 2024 Working capital2 at minus NOK 8.5 billion Working Capital2 NOK billion ■ Working capital expected to normalize during 2024 with a cash outflow of approximately NOK 4 billion during the year 1 0 -1 CAPEX in the quarter was NOK 0.6 billion -2 -3
Slide 21: 2023 | Cash Generation
2023 | Cash Generation Change in Cash and Cash Equivalents NOK million Solid cash generation in 2023 ■ Cash flow from operations of NOK 6.2 billion in the year ■ Driven by solid operational performance and all-time low working 2,436 capital which is expected to normalize during 2024 4,453 ■ Includes
Slide 22: Balanced Approach to Long-term Shareholder Value Creation
Balanced Approach to Long-term Shareholder Value Creation Operations Financial assets ▪ Operational, industrial and strategic focus ▪ Transparent set-up to manage investments and holdings ▪ Proven industrial track-record with experienced management team ▪ Well-capitalized entity with attractive asse
Slide 23: Summary Outlook
Summary Outlook ▪ On track with strategy and targets ▪ 2024 revenues is expected to grow around 15 percent compared to 2023 driven by the solid backlog ▪ Increased revenues and margins compared to last year ▪ 2024 EBITDA margins, excluding net income from the OneSubsea joint venture, are expected to
Slide 24: Q&A
Be AkerSolutions We solve global energy challenges for future generations ce
Slide 25: Additional Information
Additional Information 2024 © Aker Solutions
Slide 26: Well Positioned for Shareholder Value Creation
Well Positioned for Shareholder Value Creation Aker Solutions operational segments ▪ NOK 73 billion of backlog, majority of which are lower-risk NCS projects with upside potential through alliance models ▪ 2024 revenues expected to grow about 15% from 2023 levels ▪ EBITDA margin expected to increase
Slide 27: Timing of selected large projects in the portfolio, by Segment
Timing of selected large projects in the portfolio, by Segment Renewables and Field Development Life Cycle Project Customer Award year Delivery year (est.) Project Customer Award year Delivery year (est.) Johan Castberg FPSO Equinor 2017 2024 Aker BP EMM /Modific. Alliance (FA) Aker BP 2015 2024 Hug
Slide 28: Renewables and Transitional Energy Solutions
Renewables and Transitional Energy Solutions NOK Million Revenue 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 Total revenue (excl. special items) 5,324 19,868 5,340 7,228 6,619 8,274 27,461 7,145 8,826 9,114 11,021 36,107 Renewables and Transitional
Slide 29: Alternative Performance Measures
Alternative Performance Measures Basis for Preparation This presentation provides financial highlights for the quarter for Aker Solutions, a Norwegian limited company listed on the Oslo Stock Exchange. The same measurement principles as presented in the Annual Report 2022 have been used when prepari
Slide 30: Alternative Performance Measures
Alternative Performance Measures Profit Measures Renewables & Field Development Life Cycle Other/ eliminations Aker Solutions Aker Solutions NOK million 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 FY 2023 FY 2022 Revenue 7,025 4,535 3,547 3,576 298 137 10,870 8,248 36,057 27,468
Slide 31: Alternative Performance Measures
Alternative Performance Measures Financing Measures Alternative financing and equity measures are presented as they are indicators of the Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used company’s ability to obtain financing and service its debts. by manag
Slide 32: Alternative Performance Measures
Alternative Performance Measures Order Intake Measures Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, as they are indicators of the company’s revenues and operations in the future. Order intake includes new agreed customer contracts in the peri
Slide 33: Special Items
Special Items 1 NOK million, (Gain) / Loss Special items (EBITDA) 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 Restructuring 6 24 1 0 (0) (0) 1 2 0 3 19 24 Non-qualifying hedges 3 (7) (18) 32 (4) 2 12 5 10 3 (0) 17 Other special items 6 12 1 0 2 7 1
Slide 34: Income Statement
Income Statement NOK million Income statement consolidated 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 Revenue 5,323 19,873 5,330 7,276 6,614 8,248 27,468 7,213 8,880 9,094 10,870 36,057 Net profit equity accounted investees 3 5 0 6 (1) 27 33 0 1 8
Slide 35: Cash Flow
Cash Flow NOK million Cash flow 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 EBITDA continuing operations 64 593 155 121 150 220 647 229 193 194 551 1,166 EBITDA discontinued operations 519 1,249 443 532 586 727 2,288 640 906 1,225 0 2,772 Change in
Slide 36: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Property, plant and equipment 3,231 3,269 3,424 3,533 3,596 3,762 4,246 2,883 3,487 Intangible assets including Goodwill 5,724 5,808 6,101 6,064 5,949 5,958 5,933 3,413 3,563 Right-of-us
Slide 37: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Total equity attributable to the parent 7,833 8,011 8,727 9,129 9,244 9,940 10,506 11,187 19,313 Non-controlling interests 28 39 64 41 (4) (3) (3) (56) (1
Slide 38: Split Per Segment
Split Per Segment NOK million Revenue 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 Renewables and Field Development 2,721 10,625 2,795 3,958 3,551 4,553 14,857 4,128 5,369 5,576 7,054 22,126 Life Cycle 2,568 9,197 2,490 3,160 2,938 3,576 12,164 2,93
Slide 39: Split Per Segment
Split Per Segment NOK million NCOA 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 NCOA (1,784) (2,791) (2,307) (2,347) (4,032) (4,920) (5,753) (6,631) (8,484) Order intake 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 Renewab
Slide 40: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 Renewables and Field Development 108 540 102 76 124 185 488 171 208 239 362 979 Life Cycle 92 420 140 189 146 188 663 1
Slide 41: Order Backlog by Market
Order Backlog by Market NOK billion, % Order Backlog by Market 4Q 2022 4Q 2023 Norway 81 % 82 % Europe 9% 11 % North America 6% 4% Asia Pacific 3% 2% South America 0% 0% Africa 0% 0% Total 100 % 100 % Total backlog (NOK billion) 72.8 72.7 2024 © Aker Solutions Fourth Quarter Results 2023 February 8,
Slide 42: 2024 © Aker Solutions
2024 © Aker Solutions
Slide 43: Copyright and Disclaimer
Copyright and Disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any for